THRIVING LOCAL THRIVING LOCAL ECONOMIESECONOMIES

Gordon Mitchell for the LGAGordon Mitchell for the LGA

Closer to People and Places – A New Vision Closer to People and Places – A New Vision for Local Governmentfor Local Government

Thriving Local Economies

ContextContext

DevolutionDevolution

Is it really achievable?Is it really achievable?

Economic growth and the role of Economic growth and the role of cities/regionscities/regions

Govt ready?.......governance issues??Govt ready?.......governance issues??

White paperWhite paper

HMT study on economic growth and HMT study on economic growth and regenerationregeneration

Thriving Local EconomiesThriving Local Economies

What powers should Local Authorities What powers should Local Authorities have?have?

At what levels should these powers be At what levels should these powers be available or enabled?available or enabled?

How might development in this direction How might development in this direction be phased?be phased?

It spans very different worldsIt spans very different worlds

Tyne and WearTyne and Wear

ManchesterManchester

NorwichNorwich

RushcliffeRushcliffe

PUSHPUSH

YeovilYeovil

CornwallCornwall

International International competitivenesscompetitiveness

GrowthGrowth

Inward investmentInward investment

RegenerationRegeneration

JobsJobs

Social enterpriseSocial enterprise

Preserving communitiesPreserving communities

Keeping the high stKeeping the high st

So frameworks need to allow different So frameworks need to allow different places to be shaped for the needs of local places to be shaped for the needs of local people – there is no one answer or modelpeople – there is no one answer or model

The framework will need to be enabling, The framework will need to be enabling, and tools and levers a menu which add and tools and levers a menu which add value in different circumstancesvalue in different circumstances

No local authority is an islandNo local authority is an island

But each council should be able to But each council should be able to develop a vision which fitsdevelop a vision which fits

The urban contribution – not The urban contribution – not enoughenough

After decades of decline, obvious recoveryAfter decades of decline, obvious recovery

But…..performance is poor by comparison But…..performance is poor by comparison to other european citiesto other european cities– Bristol and Leeds did best at 34Bristol and Leeds did best at 34 thth and 43 and 43rdrd

– Rated on location for business, only Rated on location for business, only Manchester made it into the top 30Manchester made it into the top 30

63% of Englands jobs are in urban areas63% of Englands jobs are in urban areas

Innovation

Rail and air policy and infrastructure

Adult Skills

Housing Policy

Transport Infrastructure

Strategic planning

ECONOMIC DEVELOPMENT

RDA

Gov. Office

Regl Assembly

LSC

Regl. Hous Board

DfT

SRA

Railtrack

DTi

PTE

Local Govt

RES

RSS

UDP

RIS

LTP

RHS

RSS

HIP

CS

…..

ABC

NUTS

What does the landscape look like What does the landscape look like now?now?

Setting the context:Setting the context:– strategic planning strategic planning (Reg Ass)(Reg Ass)– Transport Transport (DfT,GO,SRA)(DfT,GO,SRA)– HousingHousing (GO/RegHB)(GO/RegHB)– SkillsSkills (DfeS/LSC)(DfeS/LSC)– Economic developmentEconomic development– and innovationand innovation (RDA/DTi)(RDA/DTi)

With funds controlled by RDA,GO, With funds controlled by RDA,GO, whitehallwhitehall

How much funding is subject to How much funding is subject to local democratic oversight?local democratic oversight?

An estimate would suggest that only 8-9% of An estimate would suggest that only 8-9% of funding related to the major levers of economic funding related to the major levers of economic development, below national level, are subject to development, below national level, are subject to governance by elected bodiesgovernance by elected bodies

Birmingham Birmingham City RegionCity Region

Manchester Manchester City RegionCity Region

Est. LA spendEst. LA spend £77.5M£77.5M £72.5M£72.5M

RDA/LSC/GO RDA/LSC/GO £675M£675M £600M£600M

% LA oversight% LA oversight 9%9% 8%8%

Impact of current patternImpact of current pattern

UK cities perform poorly in intn’l comparisonsUK cities perform poorly in intn’l comparisons

Effort is fragmentedEffort is fragmented

Planning and strategy lacks coherencePlanning and strategy lacks coherence

Delivery stifled:Delivery stifled:– Slow pace Slow pace – Public funding complexityPublic funding complexity– Weak ability to deliver major infrastructure – Weak ability to deliver major infrastructure –

especially transportespecially transport

Little influence for local governmentLittle influence for local government

What we needWhat we need

Focus for strategy and delivery which can bring Focus for strategy and delivery which can bring coherence, pace and impact…….appropriate for coherence, pace and impact…….appropriate for people and their placespeople and their places

Probably two layers need Probably two layers need strengthenedstrengthened

Local authoritiesLocal authorities

Sub-regional economic partnershipsSub-regional economic partnerships

Local Authorities-becoming an Local Authorities-becoming an expected playerexpected player

‘‘Duty’ to cooperate added to ‘power to Duty’ to cooperate added to ‘power to promote’promote’Develop understanding and capacity to Develop understanding and capacity to use poweruse powerNew power to protect land for economic New power to protect land for economic purposespurposesApproval to CT levy hypothicated for Approval to CT levy hypothicated for funding prudential borrowing – for capital funding prudential borrowing – for capital projectsprojects

Sub-regional partnerships-fully Sub-regional partnerships-fully poweredpowered

Strategic planningStrategic planning

HousingHousing

TransportTransport

SkillsSkills

Economic developmentEconomic development

Plus – ability to deliver major infrastructure Plus – ability to deliver major infrastructure projects…funding and decision-takingprojects…funding and decision-taking

Moving towardsMoving towards

Proposals for much more extensive Proposals for much more extensive alignment in LAAs – a ‘virtual’ single potalignment in LAAs – a ‘virtual’ single pot

Proposals and case for powers – with Proposals and case for powers – with governancegovernance

DCLG/LGA to dev programme of support DCLG/LGA to dev programme of support to partnership and LAsto partnership and LAs

Work on power to secure landWork on power to secure land

MovingMoving

White paper should say:White paper should say:– want economic development driven locallywant economic development driven locally– Strengthened role for all LasStrengthened role for all Las– Want stronger planning and delivery at level of sub-Want stronger planning and delivery at level of sub-

regional partnershipsregional partnerships– Want movement but recognise different places will be Want movement but recognise different places will be

ready to go at different pacesready to go at different paces– Want different packages(asymetrical geometry)Want different packages(asymetrical geometry)– Expect a roadmap for the development and the Expect a roadmap for the development and the

development of devolved powersdevelopment of devolved powers

Probably expect to work faster with the willing Probably expect to work faster with the willing and readyand ready

Discussion PointsDiscussion Points

What blockages to achieving economic What blockages to achieving economic development objectives do you see?development objectives do you see?

What powers do you want for your local What powers do you want for your local authority?authority?

Do you agree with focussing change at the Do you agree with focussing change at the 2 levels?2 levels?

Do you agree that a progressive Do you agree that a progressive differential approach is appropriate?differential approach is appropriate?